A Possible Reason a Nation Might Impose a Protectionist Policy

question 115

Multiple Choice

A possible reason a nation might impose a protectionist policy such as a tariff is to:

• A) increase the level of imports.
• B) help firms establish a world monopoly in a particular market.
• C) encourage specialization in the good in which the nation has a comparative advantage.
• D) increase the welfare of domestic consumers.

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